Condo Investors - How Do You Calculate Maintenance & Cap Ex?

[Brandon Shewbridge]

On an investment in a condo or co-op, what numbers are you using to calculate Cap-Ex and Maintenance in situations where HOA fees cover external items like the roof, building exterior, foundation, landscaping, etc.? For purposes of discussion here, assume the HOA is well run, the annual operating budget is sound and the account balances for reserves are within the guidelines set forth in the most recent reserve study. Under normal situation most investors would factor in 10% of rent for each category, but where should one adjust to in this situation?

(I understand that some investors don't prefer condos due to the HOA. I'm not looking to start that discussion in this thread.)